Mr Frank Yeboah is a young sales and marketing professional with experience in E-commerce, Insurance, Ride-hailing and Tangible Miscellaneous.
He currently works with Bolt as an Operations Specialist. He is passionate about sales, skills and talent education.
He loves football, Chinese movies, Hindi Movies and Comic Movies. He started his presentation by saying we all have ideas we want to materialise.
“However, not all of us are able to make meaningful progress. This is large because of the fact that most of us do not put our ideas on paper.
The difference between the winners and losers in this regard is the Business Plan” he added.
What Is A Business Plan:
A business plan is a written narrative that describes what a new business intends to accomplish and how it intends to accomplish it.
“A business plan reveals the business’ ability to solve a significant problem, or meet a significant want or need for which someone will pay a premium” Mr Yeboah continued.
“Honestly, without a plan, we’re only existing and not living.
So a plan is very important in every dimension” he added.
Content of the business plan should be clear and should give important information on all aspects of the venture.
Format Of A Business Plan:
1. The Executive Summary
Compress the whole idea and everything relating to it into the executive summary.
“In the executive summary, describe the business concept, the opportunity and the strategy.
Thus, what you want to do, the need to do it (opportunity) and how you intend to do it” he added.
If you want to start school;
Your business concept is about parents enrolling their wards to acquire knowledge at a fee.
The opportunity/problem is that children must mature at a certain level of intelligence to solve personal and societal problems as and when they arise, which probably from your research hasn’t been the case over a period; hence, the opportunity to start school.
Then you continue with how you intend to fix the problem or how to explore the opportunity. Are you using an online strategy or face-to-face interaction?
Also talk about your target, the advantages you have over your competitors if any. Touch on the costs and mention the team.
READ ALSO: You know you are an entrepreneur when…
2. The Industry, The Company And Its Product(s) Or Service(s)
Here, he asked that we give an insight into the industry our business falls within.
And talk about the key variables in the industry. “If it is education, you can talk about quality, duration, etc. If it is Telcom, you can talk about speed, access etc” he added.
“Then you move on to talk about your company properly. The products and services you are offering.
At this level, you also make clear your entry and growth strategy. If it is a school, are you entering the market with only nursery, primary or both? And how do you plan to expand and grow?
Will you venture into collaborations with other schools so your students graduate to those schools, or you will embark on an internal growth campaign and expand your reach to factor in JHS and SHS” he continued.
3. Market Research And Analysis
He said it is a fact that even with the best idea, we need to do research in order to justify our stand scientifically and we can’t avoid this as entrepreneurs.
So at this level in the plan, we do the following;
Clearly give information about our market research.
What did potential customers say about our idea?
What is the size of the market and what are the trends in the market?
Who are our competitors and what makes us better than them?
Our estimated share of the market based on our offerings.
READ ALSO: Will the customer keep you in mind?
4. The Economics Of The Business
“Over here you explain the profit potential of the business. Is it likely for the business to make profits in the long run? Will you break even in the short run?” he quizzed.
He continued to ask what our fixed costs and variable costs are. (Cost of Land, electricity, rent, water etc)
“Also which months are your peak periods?” he added.
Clearly making this information available in the plan actually makes it very simple for investors to make financial commitments.
5. The Marketing Plan
What is your overall marketing strategy?
Full visual strategy, full hearing strategy or both?
Visual means marketing strategies appealing to the eyes. Hearing means marketing strategies appealing to the ears.
Which pricing strategy will you use?
Low to high or high to low? What are your key sales tactics?
6. Design And Development Plan
No one wants to remain the same. It’s the same with a business.
“Here, you talk about how you intend to develop as a company.
Make mention of product improvements or replacements as well as the potential to introduce new products.
Also, the costs involved in such development projects” he said.
7. Manufacturing Or Operations Plan
Talk about your manufacturing process if you’re into manufacturing; talk about the operational process if otherwise.
“This should cover the source of production materials till they are transformed into the finished product or the start to finish of your operations, he added.
Example: If it is a school, talk about the beginning class, transitions and completion.
Also under the operational, you should talk about your geographical location, facilities, regulations and legal issues. (Indicate if you’re regulated by special bodies, eg, FDA, GES, BoG, DVLA, etc)” Mr. Yeboah continued.
8. Management Team
- Show your organizational structure
- Identify key management personnel.
9. Overall Schedule
Basically, schedules to show major events to be undertaken to launch the venture. They are normally referred to as the critical deadlines
10. Critical Risks, Problems And Assumptions
“There are risks associated with running a business. I will define a few that should be included here” he said.
- Management Risk: This is basically the risk that managers will make faulty decisions which will negatively affect the business.
- Marketing Risk: The risk of potential losses and failures of marketing.
- Operating Risk: The level of uncertainty associated with the core operations of the business.
- Financial Risk: Possibility of losing money on an investment or business venture.
These are the key risk areas that are normally included in the plan.
READ ALSO: Funding your business; options available
11. The Financial Plan
Have a projected income statement or profit and loss account as well as a balance sheet.
“Put all the costs and expenses in a unified financial structure and present under this section. Not forgetting cash inflows as well” he added.
12. Proposed Company Offering
Normally, the Business Plan is to secure funding from investors. So we have to offer value to investors in return for their investment.
The value here means an attractive deal to investors.
Here we make our investors a deal they can’t refuse. Our proposal should state the amount of money we want and a brief description of how we plan on using the capital available.
Show important documents
CVs of the founder(s), Picture of products or prototypes etc.
Machines to be procured if necessary, etc.
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